Seanergy Maritime Holdings Corp. announced its financial results for the fourth quarter and twelve months ended December 31, 2017.
For the quarter ended December 31, 2017, the Company generated net revenues of $24.3 million, a 123% increase compared to the fourth quarter of 2016. For the twelve month period ended December 31, 2017, net revenues were $74.8 million, up 116% compared to the same period of 2016. As of December 31, 2017, stockholders’ equity was $41.3 million and cash and cash equivalents, including restricted cash, was $11.0 million.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are pleased to announce our financial results of the fourth quarter and twelve months ended December 31, 2017. During this period we achieved a strong financial performance through increased charter rates. In addition, we improved our balance sheet by reducing our leverage. This performance was largely made possible by the benefits we are starting to realize from the well-timed positioning of Seanergy in the Capesize sector.
“During the fourth quarter of 2017, our fleet benefited significantly from the stronger Capesize market rates affirming our commercial strategy. In particular, the daily TCE rate1 of our Capesize fleet was $18,505, an increase of 152% as compared to the same period last year. For the twelve months ended December 31, 2017, the daily TCE rate of our Capesize fleet was $13,047, an increase of 152% as compared to the same period last year.
“Better market fundamentals resulted in a substantial enhancement of our financial performance, as EBITDA amounted to $7.8 million in the fourth quarter of 2017 as compared to negative EBITDA of $1.4 million in the same quarter of 2016. Furthermore in the fourth quarter of 2017, we recorded a marginal net loss of $116 thousand, as compared to a net loss of $6.9 million in the same period of 2016.
“During 2017, we further improved our capital structure by reducing our total bank debt by $13.8 million and by increasing our shareholders equity by $10.5 million, an increase of 34% compared to 2016.
“In addition, among the accretive transactions that we concluded in 2017, an additional Capesize vessel was acquired, which increased our fleet’s DWT to 1.7 million and boosted our revenue by $3.1 million through the vessel’s 214 ownership days for the year in question.
“Based on the appreciation in vessels’ value of our recent Capesize acquisitions, along with the material gain by the refinancing of one of our Capesize vessels, we estimate that the total unrealized capital gains and equity accretion created for our shareholders exceeds $29 million, which is 119% greater than the net proceeds we raised from the capital markets since August 2016. We have a proven ability to execute well-timed accretive acquisitions and I strongly believe that we have created a solid foundation that will allow us to capitalize on the rising market conditions.
“Turning to market fundamentals, in 2017 dry bulk charter rates stabilized at higher levels than in previous years, as the Baltic Capesize Index (BCI) averaged about 2,108 points, which is 105% higher than the average level recorded in 2016. Furthermore, as the orderbook for standard size Capesize vessels is currently at historical low levels, we are cautiously optimistic that the limited growth in vessel supply will reflect positively on day-rates and vessel values through 2018 and 2019. Demand is expected to outpace the limited vessel supply in 2018, on the back of a 2.7% projected growth rate for dry bulk trade volumes with growth in seaborne transportation of Capesize commodities expected at 2.4%, while growth in iron ore ton-miles exceeding 4.3%.2
“As of the date of this release, in the first quarter of 2018, approximately 78% of our Capesize available days are fixed at an average daily rate of approximately $15,920. For comparison purposes, our current Capesize rate is 42% higher than the average Baltic Capesize rate of Q1 2017 and 489% higher than the average Baltic Capesize rate of Q1 2016.”